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ARTICLE · 01 MARCH 2023

Short-time Work Despite Profits In The Billions? German State Aid – An Update

Within seven months of receiving the subsidies, the Federal Employment Agency regularly conducts final audits/ "Abschlussprüfungen" of the approved benefits.

GermanyEmployment and HR

The F.A.Z. is not known for lurid headlines, but this topic was too tempting even for the business editors ("Mercedes announces high profits and almost simultaneously applies for "Kurzarbeit"/short-time work"; FAZ, Wirtschaft, p.15 of 21 Feb. 2023).

Politicians express outrage, but what is the legal situation? Will generous subsidies now be followed by meticulous checks and, in the end, strict penalties?

While, in December 2022, the German government extended easier access to short-time allowances until the end of June 2023 (which was justified by the Ministry of Labor and Social Affairs because supply chains continue to be disrupted), the reviews of the approval notices by the German Federal Employment Agency are still underway. According to new estimates by the Munich-based Ifo Institute, the number of people on short-time working will remain at a (relatively) low level - currently probably below one percent of the workforce. But the issue is anything but "off

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